Vancouver, BC - December 30, 2011 - Viridis Energy Inc. ("Viridis" or the "Company") (TSXV: VRD), announced today that, in an effort to reduce the costs of transporting wood pellets to the New England states, it has entered into a partnership with the Grafton Upton Railroad, a local short-line railroad, and Dana Transport, a national carrier and transportation service company. The partnership will enable the Company to ship its wood pellets in bulk to the Grafton Upton Dana Transport facility in central Massachusetts for final bagging and distribution to the New England states, resulting in a more cost efficient process, while also eliminating losses due to damaged packages incurred on route.
Viridis ships approximately 25,000 tons of its Okanagan brand wood pellets to New England, annually, which werepackaged in forty pound, heavy duty plastic bags ready for sale. Transporting product in its finished state led to inefficient use of freight car capacity and exposed the bagged product to damage. Shipping wood pellets in bulk utilizes virtually all the capacity of the freight cars and results in no waste due to torn plastic bags, since bagging will occur close to final destination.
Previously, Viridis shipped product, ready for sale, to a warehousing facility in Monson, MA for distribution. The Grafton Upton Dana Transport facility located in Upton, MA is approximately 45 miles east of Monson and is equipped with a complete bagging operation, enabling Viridis to cost effectively ship bulk product, while bagging its product at a cost similar to its own operation.
Dana Transport, founded in 1976, has 50 trucking terminals and over 25 container service and leasing facilities throughout the United States and Puerto Rico. Its comprehensive rail and truck transportation services also include maintenance and repair and leasing. The Grafton Upton Railroad established a joint partnership with Dana Transport to develop the rail center in Upton, MA. The Grafton Upton Railroad is a privately owned, short line railway, which has been in operation since 1876.
"In an industry measured by volume, cost efficiencies are essential to maximize competitiveness and profitability," said Christopher Robertson, Viridis' CEO. "Transferring the packaging of our bulk wood pellets to Dana Transport not only reduces freight and spoilage cost, but also has a positive impact on our plant's production capacity. With the growth in demand for biomass accelerating, Viridis needs to focus on building capacity and efficiencies to successfully grow with the market. We are exploring several opportunities that will expand the company's production capabilities and market share, in North America and overseas."
Ron Dana, Dana Transport's founder and CEO, added, "The location of this facility in Massachusetts provides Viridis with advantages access to rail and truck routes, while the state-of-the-art facilities will ensure product quality and cost efficient bagging. Viridis will realize lower freight costs and avoid losses due to package damage that normally occurs in freight. We all look forward to developing a mutually beneficial alliance with Virids."
---------------------------------------------------------------- |Investor Contact: |Company Contact: | |Yvonne L. Zappulla |Michele Rebiere | |Managing Director |Chief Financial Officer | |Grannus Financial Advisors, Inc.|Viridis Energy Inc | |212-681-4108 |905-847-5226 | |Yvonne@GrannusFinancial.com |Investorinfo@ViridisEnergy.ca| ----------------------------------------------------------------
About Viridis Energy Inc.
Viridis Energy Inc. (TSXV: VRD) is a publicly traded, "Cleantech" alternative energy company specializing in the agricultural and wood waste biomass. Located in Vancouver, B.C., Viridis Energy operates Cypress Pacific Marketing and Okanagan Pellet Company, two acquisitions in the wood pellet sector, thus providing the company with vertical integration for distribution and manufacturing. For more information on Viridis Energy Inc. please refer to the company website at www.viridisenergy.ca.
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's future operations. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a continued downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties associated with the demand for biofuels, (3) the risk that the Company does not execute its business plan, (4) inability to finance operations and growth (5) inability to retain key management and employees, (6) ; an increase in the number of competitors with larger resources, and (7) other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and the Company intends to update such forward looking information in the Company's MD&A in the event that actual results differ materially from such forward-looking statements contained herein. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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